Selling De Beers "at a deep discount in the midst of the diamond market lull" would be a "mistake," prominent diamond analyst Paul Zimnisky told the Financial Times on Tuesday.
The independent analyst argued that Anglo American, which owns 85% of De Beers, could "afford to wait a couple more years in order to get a fair price," particularly after securing strong valuations for its metallurgical coal and nickel divestments.
The comments come as Botswana’s president, Duma Boko, escalated tensions over the potential sale, threatening to seize "full control" of De Beers.
He recently claimed De Beers was "broke" and accused the company of "not doing its job," suggesting Botswana should "take over and sell them ourselves."
The Botswana government, which holds a 15% stake and pre-emptive rights, has signalled it may pursue full ownership of what its mining minister called a "strategic national asset."
However, Peel Hunt’s Kieron Hodgson dismissed Botswana’s ambitions as "far-fetched and improbable," citing fiscal constraints after the country’s foreign reserves dropped to $3.5 billion from $4.8 billion a year earlier.
Botswana previously passed on boosting its stake in 2011 due to budget concerns when the Oppenheimers sold their 40% holding.
Anglo American faces pressure to expedite the sale following BHP’s failed takeover bid, with over 10 parties—including ex-De Beers chief executive officers Gareth Penny and Bruce Cleaver—reportedly interested.
The diamond sector remains under strain from lab-grown competition and weak demand in China and the U.S., with De Beers’ revenue halving between 2022 and 2024.
Hodgson noted that even a £1 billion sale price "would be a result" in current conditions.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
